How options expiration leaves very expensive question on Bitcoin’s direction

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After an eventful race to the top with an ATH of $58,330, Bitcoin’s price fell by more than 17 percent to $47,872 on the price charts. However, the price correction was long delayed and expected by most technical and on-line analysts, particularly since the price was over $50,000.

The bull run that began with institutional inflows and demand soared high and reached $50,000, backed by momentum and demand for all irrational reasons. Here, it is necessary to note that Bitcoin is not a meme coin or token, and as the currency of the Internet, its long-term price can be extracted from its supply demand and scarcity.

And yet, the price gains caused by Musk and his memes turned out to be short-lived, much like the memes and the mention of Bitcoin in Musk’s Twitter bio.

At press time, the crypto asset was trading at $47,882, with the next big event expected to have a huge effect on the price being the $2.5 billion Expiry Options on Deribit Exchange this Friday. Here, the highest pain price seemed to be $40,000, based on unfolded results.

Will the price fall below $40,000, or will it hold to the pain price and remain above $40,000? $40,000 is also a crypto-asset psychological standard, and falling below it can lead to a free fall in price, as experienced earlier in the case of Bloody Thursday.

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To explore the effect of the Expiry Options, let’s go back to the $1 billion Expiry Options in Bitcoin back in June 2020. In response to the expiry, the price of Bitcoin fell by less than $600. In reality, he recovered within a month and soon crossed $10,000. Here, the argument is that there have been instances where options expired, followed by swift recovery.

As the price fell from $58,330 ATH to $47,000, it is likely that after the Options expire, the price of the crypto could stay above $40,000. In addition, the price loss could be recovered within less than a month due to the current uncertainty of the price of Bitcoin. In the current phase of the business cycle, with a rise in active addresses and wallets with a balance of more than 1 bitcoin, there is a higher likelihood of recovery.
The positive outcome of the Options Expiry may be a rise in the number of HODLers and a decline in active supply. HODLers expecting to benefit from higher prices after the price drop during the expiration period could open long positions before the expiration date. While there may be a rise in the selling pressure of put buyers and callers, it is anticipated that there will be a relatively small reversal near the strike price, and a higher number of short-sellers will benefit from the decline.

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At the same time, it is expected that HODLers will be able to make long-term gains from long-term profits. All in all, the price can not be reduced to the full pain price of $40,000. If HODLers conquer the selling pressure of buyers and callers, the price could be higher than $40,000.

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